Wiltshire


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<p>Handing over a cheque in a birthday card? So last season. Families today are thinking smarter (and more stylishly) about how to support their children and grandchildren — from Junior ISAs to Trusts with “strings attached.” We spoke to Sara-Rose Welch, Senior Associate at <a href="https://www.buckles-law.co.uk/" target="_blank" rel="noreferrer noopener">Buckles Law</a>, about the clever ways to pass on wealth, protect your legacy, and maybe even sneak in a life lesson or two.</p>



<h2 class="wp-block-heading" id="h-get-creative">Get creative</h2>



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<p>Think outside the envelope. Sara-Rose suggests:</p>



<ul>
<li>Junior ISAs: tax-free savings (up to £9,000 a year) that only unlock when your child hits 18.</li>



<li>Children’s pensions: a slow-burn, high-impact move. Contribute up to £2,880 annually (boosted to £3,600 with tax relief), giving compound interest decades to work its magic. According to Sara-Rose, this could also encourage your grandchildren to prioritise their pension from an earlier age.</li>



<li>Paying fees directly: from school fees to extracurriculars. Pay the invoice yourself and it counts as your expense, not a taxable gift.</li>
</ul>



<p>Smart, stylish, and future-proof.</p>



<h2 class="wp-block-heading" id="h-are-there-more-meaningful-ways-to-gift">Are there more meaningful ways to gift?</h2>



<p>Yes — and it’s more innovative than you think. Increasingly, families are setting up Family Investment Companies (FICs). These can hold shares, property, or investments. Children become shareholders, giving them a stake in success, while parents keep control as directors. It’s a financial education and a legacy plan in one.</p>



<h2 class="wp-block-heading" id="h-can-you-gift-money-for-specific-purposes">Can you gift money for specific purposes?</h2>



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<p>Here’s the catch: once money’s in your child’s account, you can’t stop them spending it on ASOS hauls or nights out. Enter the&nbsp;<strong>Trust</strong>&nbsp;— the best way to gift “with strings.” Think of it like a safe:</p>



<ul>
<li>You (the&nbsp;<strong>Settlor</strong>) put money in.</li>



<li><strong>Trustees</strong>&nbsp;hold the key, guided by a rule book (the Trust Deed).</li>



<li><strong>Beneficiaries</strong>&nbsp;(your kids or grandkids) can only access funds for things you’ve specified — like uni, a first home, or a wedding.</li>
</ul>



<h2 class="wp-block-heading" id="h-trusts-vs-wills-what-s-the-difference">Trusts vs Wills: what’s the difference?</h2>



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<p>A Will is the classic go-to: it passes your assets straight to your children when you die. Simple, yes — but it also means they’re free to spend it however they like, whether that’s a house deposit or blowing it all on a gap-year motorbike.</p>



<p>A&nbsp;<strong>Trust</strong>, on the other hand, is more… curated. It lets you set conditions on how and when money is used. So if your child is mid-divorce, in debt, or just not ready for a lump sum, the inheritance can stay tucked safely away until the time is right.</p>



<p>And while we’re talking about essentials, don’t forget&nbsp;<strong>Lasting Powers of Attorney (LPAs)</strong>. If a Will handles your estate after you’ve gone, an LPA covers you if you’re still here but can’t make decisions yourself (say, through illness or an accident). They’re not glamorous, but they are game-changers — think of them as the ultimate life admin power duo.</p>



<h2 class="wp-block-heading" id="h-gifting-limits-how-much-can-you-give-before-tax-bites">Gifting limits: how much can you give before tax bites?</h2>



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<p>Sara-Rose breaks it down:</p>



<ul>
<li>Annual allowance:&nbsp;<strong>£3,000</strong>&nbsp;per person (one year’s rollover allowed).</li>



<li>Small gifts: unlimited&nbsp;<strong>£250</strong>&nbsp;presents per person.</li>



<li>Weddings: up to&nbsp;<strong>£2,500</strong>&nbsp;for grandchildren, or&nbsp;<strong>£5,000</strong>&nbsp;for your own children.</li>



<li>Larger gifts: In theory, you can gift your family as much as you like, but in order for it to be tax-free, you must live seven years after making them (the “seven-year rule”).</li>
</ul>



<h2 class="wp-block-heading" id="h-how-early-should-families-start-planning">How early should families start planning?</h2>



<p>“It’s never too early,” says Sara-Rose. “Some options, like the seven-year rule, mean the sooner you start, the more flexibility you have.”</p>



<h2 class="wp-block-heading" id="h-what-s-the-very-first-step">What’s the very first step?</h2>



<p>Before gifting anything, make sure you’re secure yourself. Do a deep dive into your assets, income, and likely expenses. Once you know your position, you can build a plan — whether that’s a Will, a Trust, or a Family Investment Company.</p>



<h2 class="wp-block-heading" id="h-the-bottom-line">The Bottom Line</h2>



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<p>Forget cheques in birthday cards. Today’s financial gifting is strategic, stylish, and smart — blending love with legacy. Whether it’s Junior ISAs, Trusts, or investment structures, the modern family isn’t just passing on wealth, they’re passing on wisdom.</p>



<h3 class="wp-block-heading" id="h-interested-in-more-try-these">Interested in more? Try these…</h3>



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<p><a href="https://suffolkcambs.muddystilettos.co.uk/life/5-legal-jobs-to-sort-right-now/" target="_blank" rel="noreferrer noopener">Time to grow up! 5 legal jobs to sort out right now</a></p>


Creative gifting & financial planning: The modern family’s guide

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